Offshore wind energy : balancing risk and reward

Offshore wind energy developments are expected to increase as the demand for renewable energy sources grows. This poster presentation described a method of balancing risk and reward in offshore wind energy projects. The method was based on risk assessment strategies used by the oil and gas industry. The dedicated framework considered schedules; budgets; performance; and operating and maintenance costs. A value chain assessment method was used to optimize the balance between risk and reward by evaluating uncertainties and risk related to each project element and its relationship to other elements within an integrated dynamic model designed to determine the net present value of a project. The decision-making criteria included the RISKEX risk expenditure strategy designed to consider the balance between risk exposure, capital expenditures, and operational expenditures in relation to the statistical cost of unplanned repairs, and lost production capacity. A case study of a large offshore wind farm was used to demonstrate the method. tabs., figs.